Moody’s, an international rating agency, has released a new forecast concerning the Israeli economy as the War of Iron Swords enters its fifth month. The agency has downgraded Israel’s credit rating to A2 from A1, and has assigned a negative rating outlook.
The report expresses concerns about the consequences of the ongoing war in Gaza, military escalation on the Lebanese-Israeli border, and the instability of the current Israeli government. These factors have created uncertainty and impacted investor confidence in Israel’s economy.
In response to the report, Prime Minister Benjamin Netanyahu stated that Israel’s economy is strong and attributed the downgrade to the ongoing war. He expressed confidence that the rating will rise again once the war is won. However, Netanyahu’s response reflects the government’s determination to overcome these challenges and restore economic stability.
Moody’s assessment suggests that Israel’s economy faces significant challenges due to the ongoing conflict. The agency warns that these challenges could persist for an extended period if there is no peace agreement reached between Israel and Palestine. Furthermore, Moody’s notes that political instability in Israel could also hinder economic growth in the long term.
Overall, Moody’s report highlights the need for a peaceful resolution to the conflict in order for Israel’s economy to regain stability and prosperity.